Flybe Shares Drop After Sales Warning

January 10, 2012

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Shares in Flybe, Europe's largest regional airline, dropped more than 20 percent to touch a lifetime low, after the company warned it expects sales to fall short of expectations in the third quarter.

"Whilst we expect management to undertake remedial actions to improve margins, the outlook remains challenging and we currently anticipate further losses in FY13E," analyst Andrew Fitchie of Investec Securities says in a note to clients.

"Given the likely disappointment over a further downgrade and the remaining uncertain trading outlook, it is difficult to see the share performing in the short term," Fitchie says.

(Reuters)